Dialog Semiconductor to acquire iWatt

Under the terms of the acquisition agreement, the shareholders of iWatt will receive an up-front payment of approximately USD 310 million in cash, plus up to approximately USD 35 million in contingent consideration. The contingent consideration is based on achieving future revenue targets. The acquisition is being funded from both Dialog's existing cash resources and additional debt facilities of USD 125 million. Dialog's CEO Jalal Bagherli commented, "This acquisition underscores Dialog's strategy to diversify our markets and growth opportunities through select strategic acquisitions. We see the acquisition as highly complementary to our existing PMIC business enabling Dialog to address adjacent emerging power management segments, including cutting-edge AC/DC solutions for next generation fast portable chargers as well as ICs for LED solid state lighting." "iWatt has been shipping products to numerous top-tier customers and is expected to increase our future business opportunities with market leading customers such as Samsung, HTC and Nokia in the portable segment, and GE, Osram and Philips in the fast growing solid state lighting market." concluded Bagherli. Ron Edgerton, iWatt's CEO and President and Chairman, commented, "The iWatt team is excited to join forces with Dialog. Our digital power management technology has allowed iWatt to become a leader in both AC/DC power conversion and the emerging high growth LED solid state lighting market." "The combined company will be in a stronger position to provide the complete end-to-end solution for next-generation rapid and intelligent charging for portable devices." added Edgerton.